Multiple Choice
You have a portfolio consisting of 20% Boeing (beta = 1.3) and 40% Hewlett-Packard (beta = 1.6) and 40% McDonald's stock (beta = 0.7) . How much market risk does the portfolio have?
A) This portfolio has 18% less risk than the general market.
B) This portfolio has 28% more risk than the general market.
C) This portfolio has 18% more risk than the general market.
D) This portfolio has 28% less risk than the general market.
Correct Answer:
Verified
Correct Answer:
Verified
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